Sept 1 (Reuters) - Gold prices held steady on Friday near
9-1/2 month highs touched earlier this week as simmering
tensions over the Korean peninsula fuelled safe haven demand.
FUNDAMENTALS
* Spot gold was little changed at $1,321.20 per ounce
as of 0022 GMT and was on track for a weekly gain of more than 2
percent. U.S. gold futures for December delivery were up
0.4 percent at $1,326.80.
* U.S. consumer spending rose slightly less than expected in
July and annual inflation advanced at its slowest pace in more
than 1-1/2 years, diminishing expectations of an interest rate
increase in December.
* The dollar surrendered early gains against a basket of
major currencies, pressured by simmering tensions on the Korean
peninsula.
* Investors are awaiting a monthly U.S. payrolls report to
be released on Friday.
* South Korean and Japanese jets joined exercises with two
supersonic U.S. B-1B bombers above and near the Korean peninsula
on Thursday, two days after North Korea sharply raised tension
by firing a missile over Japan.
* The United States has told Russia to close its consulate
in San Francisco and buildings in Washington and New York that
house trade missions, the State Department said on Thursday, in
retaliation for Moscow cutting the U.S. diplomatic presence in
Russia.
* U.S. Treasury Secretary Steven Mnuchin said on Thursday
that Hurricane Harvey could bring forward the deadline by which
the nation's debt ceiling needs to be raised and that he is open
to the borrowing cap being dealt with as part of a wider bill.
* GraniteShares Gold Trust , an exchange-traded fund
(ETF), began trading on Aug. 31.
* The U.S. Mint sold 9,500 ounces of American Eagle gold
coins in August, down 42.4 percent from the previous month.
* Greece plans to start an arbitration process next month to
settle its differences with Canada's Eldorado Gold Corp
over its gold mine development plans in northern Greece.
DATA/EVENT AHEAD (GMT)
0145 China Caixin manufacturing PMI final August
0750 France Markit manufacturing PMI August
0755 Germany Markit/BME manufacturing PMI August
0800 Euro zone Markit manufacturing PMI final August
1230 U.S. Nonfarm payrolls August
1230 U.S. Unemployment rate August
1400 U.S. ISM manufacturing PMI August
1400 U.S. Construction spending July
1400 Board of Governors of the Federal Reserve conducts
open meeting
(Reporting by Arpan Varghese in Bengaluru; Editing by Richard
Pullin)